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  • FIRST POST
    • dunchorler
    • By dunchorler 22nd Jun 19, 8:36 PM
    • 2Posts
    • 1Thanks
    dunchorler
    Trapped by NRAM!
    • #1
    • 22nd Jun 19, 8:36 PM
    Trapped by NRAM! 22nd Jun 19 at 8:36 PM
    Hello all,

    I would appreciate some advice on our financial situation. When we purchased our first house in 2005, we took out a 125% mortgage. We have long since sold this house and purchase two other in the mean time. However, having paid off the 95% that was secured against our first house, we still have a hefty chunk (approx £27K) outstanding with NRAM which is unsecured. We are having to fork out about £250 per month (at about 9.7%) at the moment to pay it off and there are still 20 odd years left on it. Has anyone got any ideas of how to consolidate this - what is the best way? We did consider getting two personal loans over 7 years a couple of years ago but we had small children at the time and hence couldn't afford it. We now have a bit more disposable income so we're looking at getting rid of this debt. Any advice would be much appreciated.

    Thanks.
Page 1
    • Kentish Dave
    • By Kentish Dave 22nd Jun 19, 8:49 PM
    • 452 Posts
    • 742 Thanks
    Kentish Dave
    • #2
    • 22nd Jun 19, 8:49 PM
    • #2
    • 22nd Jun 19, 8:49 PM
    Pay extra each month, see if you can get some overtime, sell anything that you don’t need, and if you can get any 0% cards switch debt to those via spending on them and using the cash saved to pay off more of the debt.

    And don’t Let it get you down, you lived in a far nicer house than you otherwise could have, and had a chunk of money extra which you spent on things that you wanted at the time. As you knew at the time, you were choosing jam today over champagne tomorrow, and you always knew there would be lean times in the future. They have now arrived but it’s not a disaster, just time to tighten your belt a bit.
    • Gaz83
    • By Gaz83 22nd Jun 19, 8:50 PM
    • 3,783 Posts
    • 7,052 Thanks
    Gaz83
    • #3
    • 22nd Jun 19, 8:50 PM
    • #3
    • 22nd Jun 19, 8:50 PM
    Look to refinance from another lender to see if you can get an APR better than 9.7%.

    Be warned though that consolidation loans don't tend to get the headline interest rates, as lenders have no guarantee you'll use the 'new' loan to pay off the 'old' one, and so will assess you on having, in your case, £54k of debt. Depending on your income you might not be eligible for a loan.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
    • Thrugelmir
    • By Thrugelmir 22nd Jun 19, 11:05 PM
    • 63,703 Posts
    • 56,412 Thanks
    Thrugelmir
    • #4
    • 22nd Jun 19, 11:05 PM
    • #4
    • 22nd Jun 19, 11:05 PM
    We have long since sold this house and purchase two other in the mean time.
    Originally posted by dunchorler
    No doubt you've benefited from the broader increase in house prices and low mortgage interest rates during this time. Was your choice to do so rather than prioritise the loan. Suggest you overpay by whatever you can scrimp together. As this will considerably shorten the remaining term.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • enthusiasticsaver
    • By enthusiasticsaver 23rd Jun 19, 7:38 AM
    • 8,765 Posts
    • 20,362 Thanks
    enthusiasticsaver
    • #5
    • 23rd Jun 19, 7:38 AM
    • #5
    • 23rd Jun 19, 7:38 AM
    Overpay the loan to get rid of it sooner.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Kentish Dave
    • By Kentish Dave 23rd Jun 19, 8:30 AM
    • 452 Posts
    • 742 Thanks
    Kentish Dave
    • #6
    • 23rd Jun 19, 8:30 AM
    • #6
    • 23rd Jun 19, 8:30 AM
    Also, if you have two properties, how are you trapped?

    Sell one.
    • meer53
    • By meer53 23rd Jun 19, 8:56 AM
    • 9,483 Posts
    • 13,879 Thanks
    meer53
    • #7
    • 23rd Jun 19, 8:56 AM
    • #7
    • 23rd Jun 19, 8:56 AM
    Also, if you have two properties, how are you trapped?

    Sell one.
    Originally posted by Kentish Dave
    They don't have two houses ? They've moved twice since the original loan, that how I read it anyway.
    • Kentish Dave
    • By Kentish Dave 23rd Jun 19, 9:10 AM
    • 452 Posts
    • 742 Thanks
    Kentish Dave
    • #8
    • 23rd Jun 19, 9:10 AM
    • #8
    • 23rd Jun 19, 9:10 AM
    They don't have two houses ? They've moved twice since the original loan, that how I read it anyway.
    Originally posted by meer53
    Yes, I suppose it’s possible that they mean this.

    In that case it’s back to my first post, they spent their future earnings early so now have a few lean years coming to get back onto an even keel, if you’ll accept a mixed metaphor.
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